PAYMENTS ON PRODUCTION. 6.1 Each Party taking Gas shall pay or cause to be paid all production and severance taxes due on all volumes of Gas actually taken by such Party.
PAYMENTS ON PRODUCTION. Each Party shall pay all production or severance taxes, excise taxes, royalties, overriding royalties, production payments and other such payments on production for which it is obligated by law or by lease or by contract (including the Operating Agreement), and nothing in this Gas Balancing Agreement shall be construed as affecting such obligations. Each Party hereto agrees to indemnify and hold harmless the other Parties hereto against all claims, losses or liabilities arising out of its failure to fulfill such obligations.
